Purpose: Identify summary liquidity, solvency, and profitability information about companies, and compare this information across companies in the same industry.

Address: http://biz.yahoo.com/i (or go to www.wiley.com/college/kimmel)

Steps:

1. Type in a company name, or use the index to find a company name.

Perform instructions

(a) and

(b) below.

2. Click on the company’s particular industry behind the heading “Industry.”

Perform instructions

(c) and (d).

Instructions Answer the following questions:

(a) What was the company’s current ratio, debt to equity ratio (a variation of the debt to total assets ratio), profit margin ratio, and return on assets ratio?

(b) What is the company’s industry?

(c) What is the name of a competitor? What is the competitor’s current ratio, debt to equity ratio, profit margin ratio, and return on assets ratio?

(d) Based on these measures: Which company is more liquid? Which company is more solvent? Which company is more profitable?